MUMBAI, April 18, 2016: Tata Consultancy Services (TCS), (BSE: 532540, NSE: TCS), a leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS for the quarter and financial year ended March 31, 2016.

Digital revenues at 15.5% in Q4

120,000 TCSers trained in 400+ new digital technologies in FY16

New Digital Products and Platforms gain strong customer traction

Annual Highlights for 2015-16

Q4 Highlights for 2015-16

Operating Profits at $4.38 billion up 17.6% Y-o-Y

Customer Revenue Metrics:

Clients in $100M+ band increased by 8

Clients in $20M+ band increased by 11

Clients in $10M+ band increased by 37

All time high Gross addition: 90,182 Employees

FY16 EPS at $1.88

Operating Profits at $1,096 million

Volume growth at 3.2%

Digital Revenues: 15.5%

Gross Addition: 22,576 employees

Net addition: 9,152 employees

Attrition rate: 15.5% LTM (14.7% in IT services)

EPS at $0.48 in Q4 from $0.47 in Q3

N. Chandrasekaran, CEO and MD, TCS, said, “Our core portfolio performed strongly in a seasonally weak 4th quarter driven by strong volumes led by growth in BFSI, retail and manufacturing sectors. This gives us good momentum going into the new financial year. Our investments in building high impact digital platforms is paying off, resulting in over $2.3 billion in digital revenues. We are building the right talent pool by training more than 120,000 TCSers in FY16 in over 400 new digital technologies to help our customers drive adoption of digital in their enterprise.”

Chandrasekaran added, “Looking ahead, we continue to build on our trusted customer relationships and remain focused on helping them win in the new experience economy. We will continue to invest in developing ‘digital’ talent and launch new products in emerging areas leveraging the Internet of Things, automation and machine learning. We also look forward to intensifying our social initiatives to bring the benefits of technology to the community.”

Rajesh Gopinathan, Chief Financial Officer, TCS, said, “In FY16, we have balanced our focus on delivering an industry leading financial performance with our ongoing investment program designed to capture evolving Digital demand. We have invested over $250M to support organic growth in our Digital businesses and in new markets, while maintaining our profitability within our desired range and generated strong operating cash flows as well.”

In terms of key markets, growth in Q4 was led by Europe (3.6% Q-o-Q) and North America (2.4% Q-o-Q) in constant currency. For FY16, North America grew by 10.8%, Europe grew by 12.9%, UK by 8.3% in constant currency. India crossed $1 billion milestone in annual revenues while overall revenues from new Growth Markets stood at $3.3 billion in FY16.

Select Key Wins in Q4

Selected by large UK bank as their strategic IT partner for Information Management including Big Data and Analytics

Selected by major Commercial Insurer for infrastructure transformation and support

Selected by large Personal Lines Insurer to modernize Policy Administration through third party product implementation and integration

Selected by large North American Healthcare firm as a strategic partner to provide ADM and Assurance

Selected by Global Professional Services firm for its digital transformation journey to implement an Enterprise Cloud Marketplace through a Public-Cloud-first model

Selected by leading process manufacturing major as a strategic partner for application and infrastructure support for all global business operations

Selected as strategic partner by a leading newspaper conglomerate in North America to manage end to end IT operations and drive transformation to support the changing business environment

Sweden’s leader in digital banking selected TCS BaNCS platform to power long term business growth and offer next-generation digital banking services

Digital

In FY16 Digital revenues grew 52.2% due to faster adoption of digital solutions as customers moved to embrace a holistic digital transformation of the enterprise. With its strong suite of products and solutions, extensive domain expertise and customer contextual knowledge, TCS captured significant customer opportunities with 15.5% of total revenues coming from Digital in Q4 led by Analytics & AI, cloud and mobility and channels.

These include built technology-based Intellectual Property (IP) tools and horizontal cloud-based platforms as well as that can used across industries as well as products for specific domains like retail, banking and education.

ignioTM, TCS’ flagship automation product for enterprise IT that helps customers analyse, plan and predict their IT needs has received tremendous traction with 16 new customers acquired in less than 9 months since its launch.

TCS BaNCSTM Over 25 customers went live in the last six months on the core banking platform, as the product penetrated new geographies and won new clients. TCS BaNCS won six new clients during the year in Greater China and notched up its first major win in the Nordics. In Capital Markets, TCS BaNCSTM continues to be the platform of choice of leading sell-side firms, custodians, exchanges and depositories for Trading, Asset Servicing, Securities Processing, Clearing and Settlement. TCS BaNCS was selected by Myanmar’s leading securities brokers, who went live on our platform with global trading practices in under 90 days.

iONTM Assessment platform has gained strong ground in the education sector with significant growth. This product has assessed more than 50 million candidates till date with an 88% reduction in turnaround time.

In the retail sector, our advanced digital merchandising suite OptumeraTM which allows shopper centric merchandising and modelling to retailers to reimagine the customer journey in a omni-channel world

The life sciences vertical is able to transform the clinical trial process for our customers by leveraging TCS Advanced Drug Development Product which helped conduct over 100 clinical trials for 7 customers, including for three out of top 10 global pharma companies

TCS HOBS, a comprehensive business platform for the Telecom industry standards is enabling fit for purpose and fit for growth for 16 of our telecom customers

Our horizontal platform, TAPTM for accounts payable processes is simplifying and automating the purchasing experience with up to 97% touchless processing in specific cases and has won seven customers

CHROMATM, our HR platform to enable next generation employee experience, is gaining strategic traction in the market with five customers using the platform

The company also launched the TCS Urban Intelligence platform (IUX) to help drive quality of life for citizens worldwide and the TCS Customer Intelligence & Insights platform (CII) with live customers and the market response is promising

Innovation and Intellectual Property:

As of March 31, 2016, the company has applied for 2,842 patents, including 260 applied during the quarter. Till date the company has been granted 341 patents.

Human Resources:

The company continued to hire to support business growth and employed 353,843 professionals globally from 129 nationalities including with 33.8% women professionals at the end of FY16. The attrition rate for IT services was 14.7% while overall it stood at 15.5% on an LTM basis. FY16 saw an all-time high gross addition of 90,182 employees in FY16, with a net addition of 34, 187 employees. In Q4, there was a total gross addition of 22,576 employees and net addition of 9,152.

“TCS completed its highest ever hiring of over 90,000 new employees globally during the year. We are also delighted that our employee retention continues to increase as we continue to invest in building digital skills of TCSers to help them participate extensively in the new digital economy.” said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.

Awards and Recognition: Business Leadership:

Rated as the world's most powerful brand in IT Services by Brand finance

Recognised as a UK 'Superbrand' in the UK and among UK’s strongest B2B brands for 2016

Recognised as a Global Top Employer by the Top Employers Institute in 24 countries

Top Employer certification in UK, Europe, USA, Canada, South America, Africa, Asia, Australia, Latin America and the Middle East

Won nine awards at Brandon Hall Group's HCM Excellence Awards Program 2015 for learning, career management, workplace planning, employee engagement and skill development

Won multiple awards at Global HR Excellence Awards and Recruiting and Staffing Best in Class (RASBIC) awards 2015-16 instituted by the World HRD Congress.

Recruiting & Staffing Industry Leader of the Year - Award for Best Candidate Experience

Partner:

TCS Oracle GTM chosen as Top 15 in the category 'Enable Improved Business Agility' by Tele Management Forum (TM Forum)

Won the Hitachi Data System’s Global System Integrator Partner of the Year award and Outstanding Business Contribution of the Year’ awards at the APAC GSI summit 2016

Unaudited Condensed Consolidated Statements of Comprehensive Income For the years ended March 31, 2015 and 2016 (In millions of USD, except per share data)

Year ended March 31, 2015

Year ended March 31, 2016

Revenue

15,454

16,545

Cost of revenue

8,894

9,274

Gross margin

6,560

7,271

SG & A expenses

2,833

2,886

Operating income

3,727

4,385

Other income (expense), net

512

464

Income before income taxes

4,239

4,849

Income taxes

994

1,142

Income after income taxes

3,245

3,707

Minority interest

33

19

Net income

3,212

3,688

Earnings per share in $

1.64

1.88

Unaudited Condensed Consolidated Statements of Comprehensive Income For the three-month periods ended March 31, 2015, December 31, 2015 and March 31, 2016 (In millions of USD, except per share data)

Three-month period ended March 31, 2015

Three-month period ended December 31, 2015

Three-month period ended March 31, 2016

Revenue

3,900

4,145

4,207

Cost of revenue

2,496

2,305

2,375

Gross margin

1,404

1,840

1,832

SG & A expenses

766

738

736

Operating income

638

1,102

1,096

Other income (expense), net

182

106

134

Income before income taxes

820

1,208

1,230

Income taxes

194

280

291

Income after income taxes

626

928

939

Minority interest

5

2

1

Net income

621

926

938

Earnings per share in $

0.32

0.47

0.48

Unaudited Condensed Consolidated Statements of Financial Position As of March 31, 2015 and March 31, 2016 (In millions of USD)

As of March 31, 2015

As of March 31, 2016

Assets

Property and equipment

1,849

1,780

Intangible assets and Goodwill

628

595

Accounts Receivable

3,266

3,634

Unbilled Revenues

612

603

Investments

280

3,445

Cash and Cash equivalents

298

1,011

Other current assets

3,399

902

Other non-current assets

1,667

1,799

Total Assets

11,999

13,769

Liabilities and Shareholders' Equity

Shareholders' Funds

9,185

11,048

Long term borrowings

18

12

Short term borrowings

39

25

Other current liabilities

2,306

2,326

Other non-current liabilities

305

304

Minority Interest

146

54

Total Liabilities

11,999

13,769

About Tata Consultancy Services Ltd. (TCS)Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPS, infrastructure, engineering and assurance services. This is delivered through its unique Global Network Delivery Model™, recognized as the benchmark of excellence in software development. A part of the Tata group, India’s largest industrial conglomerate, TCS has over 353,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $16.5 billion for year ended March 31, 2016 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.